Valeo Wins Billion Euro Order from Volkswagen Group

    PARIS--Sept. 27, 2002--Valeo today announced that it has secured an order worth more than one billion euros from the Volkswagen Group for its new generation of Heating, Ventilation and Air Conditioning (HVAC) systems. The Valeo HVAC systems will be installed on future Volkswagen models.
    "Our team of specialist engineers has worked closely with Volkswagen's R&D engineers to develop the HVAC system. We are pleased that the new design meets Volkswagen's high performance standards for thermal systems and will provide vehicle occupants with superior levels of comfort. This substantial contract is very significant to Valeo since it underlines the continuing strength of our partnership with Volkswagen as well as our commitment to providing value-added systems in large volumes," said Thierry Morin, Chairman of Valeo's Management Board.
    The custom-designed HVAC systems will significantly enhance interior comfort on a number of future Volkswagen models by the use of individually adjustable air temperature controls for both driver and front passenger. The compact HVAC system is optimally designed to meet Volkswagen's demands for a flexible concept that can be tailored to the different Volkswagen brands and their various models without altering the high system performance or comfort features that are appreciated by Volkswagen drivers around the world.
    An exhaustive engineering effort lies behind this new contract success. Valeo's technical centers and advanced test facilities in Wolfsburg and Bad Rodach in Germany and in La Verriere, France, played lead roles in the HVAC design and development program. Technical innovations generated by the program have led to the filing of 10 new patents.
    The new HVAC systems specified on future Volkswagen models will be produced at Valeo's facilities in the Czech Republic and Mexico. These Volkswagen A-rated manufacturing facilities currently specialize in the high-volume manufacture of HVAC systems for supply to Volkswagen manufacturing facilities all over the world.
    Market research recently conducted by Valeo, the number one supplier of HVAC systems in Europe, highlights that consumers have come to perceive air conditioning as an essential and desirable feature of their cars. Top of the range and medium cars increasingly specify air conditioning as standard equipment and significant future growth is expected in the high-volume mini and small car segments.
    Anticipating customer needs for thermal systems is part of Valeo's "Vehicle Thermal Systems" Domain which offers solutions to generate, control and dissipate the thermal energy generated within the vehicle by optimizing engine cooling and improving cabin climate comfort for vehicle occupants.
    Valeo is exhibiting Valeo-added innovations at the Mondial de l'Automobile, hall 1, stand 409, aisle C, September 26- October 13, 2002
    Valeo is one of the world's leading automotive component, system and module suppliers with annual sales exceeding ten billion euro. Total quality, innovative value-added technology, global presence and competitive costs are the company's strategic objectives. A strong commitment to the transversal "Domains" approach supports these objectives by realizing technological synergies across the Group's wide product portfolio. Satisfying customer and consumer expectations for increasingly complex and value-added vehicle systems is the foundation for the company's future success.
    Valeo is an independent industrial Group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. Valeo ranks among the world's top automotive suppliers. The Group has 142 plants, 53 R&D centers, 10 distribution centers and employs nearly 72,000 people in 24 countries worldwide.

    For more information on the Group and its businesses, consult our Web site: www.valeo.com